Shiba Inu (SHIB) Bullish Breakout at Risk of Fading

5 months ago 2

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Shiba Inu’s (SHIB) price is not exhibiting the most impressive performance despite breaking out of a downtrend.

The investors’ lack of support is a concern, and it could lead to the meme coin losing the rally.

Shiba Inu Investors Remain Skeptical

Shiba Inu’s price action has disappointed its investors, resulting in SHIB holders stepping away from participating in the network. This is evident in the transaction volume.

The average daily transaction volume has fallen from $169 million in April to $38 million in May. This is a 77% decline, which is largely due to the waning meme coin craze, which resulted in the surge of tokens such as dogwifhat (WIF) and Pepe (PEPE).

Furthermore, the lack of optimism observed in investors extends to those who have yet to join the network. This is visible in the adoption rate, which is presently at an eight-month low.

The adoption rate measures the rate at which new addresses are formed on the network. This assesses whether the project is losing or gaining traction in the market. In the case of SHIB, this adoption rate is at 29%, suggesting only 29% of all active addresses are new investors.

While this is not the worst, it is not the best either, given that Shiba Inu has seen better participation from new investors in the past.

SHIB Price Prediction: Possible Decline Awaits

Shiba Inu’s price is changing at $0.00002393 after escaping the downtrend it has been under for two and a half months. The meme coin is currently consolidated within $0.00002584 and $0.00002267.

However, considering the abovementioned factors, the likely outcome is a slip below $0.00002267. This would send SHIB to $0.00002093 or lower and could erase half the gains noted during the February end to early March rally.

The Ichimoku Cloud also supports this outcome, given that it is above the candlesticks and exhibits bearishness. The Ichimoku Cloud is a comprehensive indicator that defines support and resistance, identifies trend direction, gauges momentum, and provides trading signals.

Thus, Shiba Inu’s price could likely see a decline.

On the other hand, if the meme coin can sustain the breakout, it could breach the resistance of $0.00002584. This would push SHIB towards $0.00002835, and flipping it into support would invalidate the bearish thesis, sending the meme coin further upward.

The post Shiba Inu (SHIB) Bullish Breakout at Risk of Fading appeared first on BeInCrypto.

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